European Central Bank Executive Board member Joerg Asmussen said on Wednesday that the ECB and the European Commission expect Cyprus to rebound in 2015, helped by a smaller banking sector.
Speaking in front of the Economic and Monetary Affairs Committee of the European Parliament, Asmussen said Cyprus’s economic activity would contract significantly this year and next, but the economy should improve the following year.
“We only would expect – and this is a joint (EU) Commission, ECB perspective – the economy to rebound in 2015 under the assumption that a smaller and more resilient banking sector would be able to boost growth,” Asmussen said.
“But it is very clear that both short- and medium-term macro risks remain tilted to the downside,” he said.
Reuters
